As GBPAUD rates have been gently pushing higher since last Autumn and could easily test the 1.80 level should we see some favourable news for the pound and less favourable news on the Aussie this week. This report looks at the what's next for Australian Dollar rates. The below table shows the market movement for the GBPAUD exchange rate in the last month:
|Currency Pair||% Change||Difference on £200,000|
Clients looking for further opportunities both when buying and selling Australian Dollars should take note of events in the US and globally too.
With no fresh news on the Australian dollar until tomorrow's Unemployment data, all eyes will be on the Boris Johnson speech to impact sterling. It may well turn out to be a non-event but Boris Johnson is anything but predictable, the day he came out in favour of Leave in February 2016 saw the pound drop 2%. Wage growth is a real key concern on the Australian dollar and was highlighted by Assistant Governor Luci Ellis this week. She stated wage growth could be slow which might remove the need for the RBA (Reserve Bank of Australia) to hike interest rates. There have been many sentiments that the RBA will need to hike interest rate to cool their ever-growing economy, such comments by the assistant governor make tomorrow’s Unemployment data even more interesting.
Any signs Unemployment figures are not as strong as they are predicted to be could see the Aussie weaker. Couple with any positive news on GBP could see the 1.80 level in sight. Friday, we have the latest UK Retail Sales figures due at 09.30 which could provide some extra volatility. Often to break above a key level of resistance such as 1.80 we will need to see a real big change in the sentiments to break that level.
A continuation of the current trends may well lead to the rates moving higher. However, part of last week’s movement on GBPAUD can be attributed to a stronger US dollar on stock market fears. Investors seeking safety pulled funds out of the Aussie into the safe shores of the US dollar reflecting weakness on Australian Dollar against the Pound.
As a commodity currency the Aussie can rise and fall in times of uncertainty, in the opposite manner to a safe haven currency like the US dollar or Swiss Franc.
For more information on how future data releases could affect Australian Dollar rates call our trading floor on 01494 725 353 or email me directly at email@example.com.
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